Morningstar Ranks Top College Savings Plans

Alaska, Maryland and Ohio are among the states with top-rated 529 plans.

BOSTON ( MainStreet) -- Across the country, states are offering college savings vehicles known as 529 plans.

Similar to 401(k) plans, the offerings allow money to be invested on behalf of a child's college expenses. Like a retirement plan, contributions benefit from compound interest.

Alaska, Maryland and Ohio are among the states with top-rated 529 college-savings plans.

Morningstar ( MORN), a leading provider of independent investment research, has issued its annual research study and ratings based on an analysis of the nation's largest 529 plans.

Its mutual fund analysts evaluated the quality of the portfolio of investment options; the investment options' performance; the skill of the options' managers; the stewardship practices of the 529 plan's administration; and the costs associated with the plan. They then assign ratings of "Top," "Above Average," "Average," "Below Average," and "Bottom." 529 plans getting a "Top" rating incorporate the industry's best practices, including solid investment choices at a fair price.